The Average Time Period for the Finalisation of a Deceased Estate | BOTHA COPO ATTORNEYS (2024)

The Average Time Period for the Finalisation of a Deceased Estate

by Kristijan Madjarevic

In the unfortunate event of a loved one passing away, the specifics of their estate needs to be administered correctly to give their family peace of mind. The administration process ensures all the terms of his or her last will and testament, if applicable, are carried out correctly. The process itself is highly procedural because each individual’s assets, family wishes, and circ*mstances vary. Because of this, the estate administration process usually requires specialized knowledge and proficiency.

The administration of a deceased’s estate is a legal process governed by the Administration of Estates Act, whereby estates of a gross value of R250 000.00 or more are administered by a duly appointed executor whether nominated in a Will or where there is no will, an executor will be appointed by the Master of the High Court. An Executor can be nominated by the beneficiaries; the same is applicable where the estate of the deceased is insolvent.

Once an executor is appointed the average time frames applicable with the estate’s administration are as usually anywhere from 6 to 13 months, depending on the estate’s specifics. This includes the following phases from the death of the deceased to the finalisation of the estate:

• Notice of the estate and the appointment of an executor;
• Preparatory work for the compilation of the Liquidation and Distribution account;
• Investigation of the Liquidation and Distribution account by the Master;
• The Liquidation and Distribution account lays open for inspection by interested parties and creditors;
• Finalisation of the estate (after the lapse of the inspection period and where no objections have been lodged)

Notice of the estate and the appointment of an executor

Once the Master of the High Court has been notified of an individual’s death through prescribed documents, he or she once satisfied with the documents and the validity of the Will, will appoint an executor by issuing the said person with “letters of executorship”.

The main function of an executor once appointed includes, but are not limited to the following:

• The collection of relevant information related to all of the deceased’s assets, including: moveable property, immoveable property, proceeds of insurance policies, shares, and outstanding debts owed to the estate;
• Ensuring the final wishes of the deceased individual are carried out effectively and within the parameters allowable by legislation;
• Ensuring that the deceased’s estate and assets are divided up according to the last will and testament of the deceased, or if there is no will, according to the Intestate Succession Act;
• Settling any debts against the estate once their validity has been verified;
• Transferring assets to their delegated heirs after debts have been settled; and
• Protecting the interests of creditors and heirs.

The necessary preparation for the compilation of the Liquidation and Distribution Account

A Liquidation and Distribution Account’s (hereinafter referred to as an “L&D Account”), purpose is to set out all assets, liabilities and administration costs. It extrapolates how assets are to be divided and distributed to the heirs in terms of the Will, or in terms of the Intestate Succession Act where there is no Will, and also whether Estate Duty is payable or not. The compiling of a Liquidation and Distribution Account can take up to an average of six months, depending on the size and complexity of the estate. In terms of the Administration of Estates Act, the executor must submit the account within six months of the issue of the letter of executorship, unless the Master of the Court has given permission in advance for a time extension in terms of Regulation 6. Once the executor has received the letter of executorship, he or she is obliged to place a notice in the Government Gazette, and one or more local newspaper where the deceased was ordinarily resident for a period of 12 months preceding his or her death, requesting the creditors of the deceased to notify the executor of any claims they might have against the estate within a period of 30 days. During these 30 days the executor continues to acquire valuations of fixed and movable assets in the estate. This is in terms of Section 29 of the Administration of Estates Act.

Once all information has been gathered by the executor, he or she will determine if the estate has adequate cash in order to meet its obligations. Where the situation arises that the estate has a cash deficit, then the beneficiaries of the estate are consulted in order to decide how the cash shortfall will be met. If said beneficiaries are unable to reach consensus on this, then the executor will sell assets in order to cover this cash deficit by the estate, which may also delay and prolong the administration process. The executor will also determine the tax position of the deceased’s estate at this point by submitting the necessary returns to the South African Revenue Services.

Investigation of the Liquidation and Distribution Account by the Master

Once the Liquidation and Distribution Account is compiled, it is submitted to the Master of the High Court for examination. During this period, which may take four to eight weeks on average, the Master may require the executor to furnish further information and any other proof which may assist with the inspection process.

The Liquidation and Distribution Account lies open for inspection

Once the Master is satisfied that the Account has been correctly drawn, the Account must be advertised in terms of Section 35(5) (a) of the Administration of Estates Act and lies open for inspection for a period not less than 21 days. The Account lies open for inspection at the Master’s office and if the deceased was ordinarily resident at the date of his or her death in any district other than the Magisterial District in which the Master’s Office is situated, a duplicate of the Account lies open for inspection at the Office of the Magistrate having jurisdiction over the area where the deceased was resident at date of death. During the inspection period the Account is made available to interested parties for inspection. If any interested party is dissatisfied with the Account, he or she may object in terms of Section 35(7). If there are no objections lodged against the estate, the executor may proceed to finalise the estate.

Finalisation of the estate

Once the Master has been satisfied/notified that all creditors have been paid, and that all heirs have received their inheritance, and that the fixed property has been transferred, the estate is regarded as being finalised and the executor’s duties are complete.